In the currency market, the Japanese yen traded at 109.93 to the U.S. dollar, strengthening from an earlier low of 110.29.

Some of the major export stocks closed lower: Shares of Toyota fell 1.6%, Mitsubishi Motors declined 0.7% and Canon was down 3.3%. Honda shares, however, rose 2.1%, beating the broader market trend after the car maker raised its full fiscal year profit forecast on Friday.

In Australia, the heavily weighted financial sub-index was down 1.3%, while the energy and materials sectors fell 2.6% and 2.2%, respectively.

The biggest banking names in the country fell: Shares of ANZ were down 1.3%, Commonwealth Bank declined 1.2%, Westpac was down 1.2% and the National Australia Bank fell 1.3%

Meanwhile, the Australian dollar traded at $0.7933 U.S., climbing from an earlier session low of $0.7887.

CHINA

In Shanghai, the CSI 300 inched up 2.92 points, or 0.1%, to 4,274.15

On the data front, China's services sector expanded at its fastest pace in almost six years, according to a private survey. The Caixin/Markit services purchasing managers' index rose to 54.7 in January from December's 53.9, the highest reading since May 2012

In other markets

The Kospi in Korea gave back 33.64 points, or 1.3%, to 2,491.75

In Taiwan, the Taiex Index slumbered 179.98 points, or 1.6%, to 10,946.25

In Singapore, the Straits Times Index slid 46.89 points, or 1.3%, to 3,482.93

In New Zealand, the NZX 50 tumbled 173.46 points, or 2.1%, to 8,241.83